Retirement Planning: To become a millionaire, you need to invest regularly and choose the right scheme. Let us tell you how you can get 50,000 pension in retirement.
If you also want to become a millionaire and want to secure your old age, then you should start saving money for retirement from the day of your job. The sooner you start accumulating money, the more money you will get till retirement. You have many investment options like EPF, NPS, stock market, mutual funds, real estate etc. to accumulate a huge corpus for retirement. Let us know in detail about the pension scheme. Also Read: Post Office- Withdraw money from Post Office account, know what is the process here?
Retirement Planning with NPS
Among all these, NPS is one such option which is safe as well as gives good returns. We are going to tell you how you can arrange a pension of Rs 50,000 per month for yourself through the New Pension System ie NPS. Also Read: PF account holders get 7 lakh rupees for free, know when and how to claim?
50,000 rupees pension for retirement
Suppose you are 30 years old now. Today if you invest 10 thousand rupees every month in NPS. So till retirement i.e. after 30 years when you will be 60 years old then you will have lump sum amount of more than 1 crore rupees in your hands and 52 thousand rupees pension will come every month, that is different. That is, your old age will pass without any tension and will not be dependent on anyone.
Investment in NPS
Your age 30 Years
Retirement age 60 Years
Investment in NPS every month 10,000
Expected return 9 percent
Annuity period 20 years
Investing in annuity plan 40 percent
Expected return on annuity 6%
Will retire as a millionaire
NPS is guaranteed by the government, that is, you get an annual return of 9 to 12 percent. On maturity, you have to invest 40 percent in an annuity scheme so that you can get regular pension, the return of annuity is also close to 6 percent. Now with the help of NPS calculator, know how much amount you will get after 30 years. According to the NPS calculator, after retirement
Your total wealth is Rs 1.84 crore
Lump sum amount Rs 1.10 crore
Pension every month Rs 52,857
NPS returns depend on many factors
Remember that all these calculations are approximate, figures and returns may vary. If you want to increase or decrease your monthly pension, then you have to increase or decrease the investment in NPS accordingly. The total wealth and pension from NPS depends on several factors, such as your age, and the performance of the equity market. Anyone between 18 years and 65 years can invest in NPS.
Tax benefits in NPS
Through NPS, you can save tax up to Rs 2 lakh annually. Under Section 80C of Income Tax, you can save tax up to a maximum of Rs 1.5 lakh, but there is an additional tax exemption of Rs 50,000 if you invest in NPS.
There are two types of NPS
There are two types of NPS, NPS Tier 1, and NPS Tier 2. The minimum investment in Tier-1 is Rs 500 while in Tier-2 it is Rs 1000. However, there is no maximum investment limit in this. There are three investment options available in NPS. In which the investor has to choose where his money will be invested. Equity, Corporate Debt and Government Bonds. With more exposure to equities, it also gives higher returns. Keep in mind that you should do any investment only after talking to your investment advisor.
